S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
FINANCIAL AUDIT REPORT
December 31, 2015
Sustainable Persistent Organic Pollutants (POPs)
Management Project (SPMP) financed by the World Bank (WB)
Under grant agreement TF 017336
Office: Villa 3, Kasemi st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006
TABLE OF CONTENTS
Page
INDEPENDENT AUDIT REPORT 3
AUDIT OBJECTIVES......................................................................................5
STANDARDS AND ETHICS.............................................................................5
A U D IT SC O PE ...............................................................................................6
PROCEDURES PERFORM ED...........................................................................6
SOURCES OF INFORM ATION.........................................................................
USE OF THIS REPORT.................................................................... ...........g.
INFORMATION ABOUT THE GRANT ..............................................................9
FINANCIAL STATEMENTS REPORTS...............................................................11
1. STATEMENT OF SOURCES AND USES..........................................................11
2. STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION........................12
3.STATEMENT OF EXPENDITURES (SOE) WITHDRAWAL SCHEDULE................13
4.STATEM ENT OF ASSETS ..............................................................................13
FACTUAL FINDINGS FOR FINANCIAL STATEMENTS .......................................14
1.SIGNIFICANT ACCOUNTING POLICIES ...................................................14
2.INTERNAL CONTROL SYSTEM........... ...................................................15
3.CURRENCY EXCHANGE VARIANCE.........................................................16
4.GOODS, NON-CONSULTING SERVICES,
CONSULTANTS' SERVICES & TRAINING ...................................................16
5.OPERATING COSTS................................................................................16
6.CASH FLOW RECONCILIATION...............................................................17
7.WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS.............18
ANNEX:
FINANCIAL AUDIT OF THE PREPARATION GRANT TF97823..............................23
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS...................24
n o S. Mostafa El Gammal
Chartered Accountaint Finance &Taxation Consultant
INDEPENDENT AUDIT REPORT
To The Management of
Sustainable Persistent Organic Pollutants (POPS) Management Project (SPMP)
11-January- 2016
We have audited the financial statements of Sustainable Persistent Organic Pollutants (POPs)
Management Project (SPMP) financed by the VVorld Bank (WB) under credit agreement TF
017336 represented in Statements of Sources and Uses of Funds and Statement of Expenditures
(SOEs) for the period from August 26, 2014 to December 31, 2015, designated account
reconciliation as of December 31, 2015.Our responsibility is to express an independent opinion on
these financial statements based on our audit.
Respective responsibilities of the auditors
It is our responsibility to form an independent opinion, based on our audit, on those statements
and to report our opinion to you.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (ISA) and such
other specific procedures requested by the Governing Body. An audit includes examination,
on a test basis, evidence supporting amounts and disclosures in the financial statements. It
also includes an assessment of the significant estimates and judgments made by the
governing body in the preparation of the financial statements, and of whether the accounting
policies are appropriate to the Project's (group's) circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which
we considered necessary in order to provide us with sufficient evidence to give reasonable
assurance that the financial statements are free from material misstatement, whether caused
by fraud or other irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
3
office : Villa 3, Kasemn st., DOkk, Giza Tel : 33352389 Fax : 33365689 Mob. : 01222310006 .W. ,
S. Mostafa El Gammal
gi
Chartered Accountant Finance &Taxation Consultant
Opinion:
In our opinion:
The financial statements referred to above and the related notes, present fairly in all material
respects, the financial position, the statement of sources and uses of funds, and account
reconciliation of Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP)
as of December 31, 2015. Expenditures provided in the statement of expenditures are properly
supported and represent eligible expenditures under the loan agreement. Also the procurements
of goods/Non consulting services, consulting services incurred during the year were conducted in
accordance with the World Bank procurement guidelines under IBRD Loans and IDA Credits,
dated January 2011 (Procurement Guidelines).
Our audit did not identify material internal control weakness associated with project internal
controls or material instance of non-compliance with the agreements terms and applicable laws,
rules and regulations.
Yours sincerely,
Auditors' signatuva-
Name of Auditor signing [Dr. Hesham Mahmoud]
Auditors' address [Villa 3, Kasem street, Dokki, Giza, Egypt]
Date of signature
.
4i
Office : Villa 3, Kasemn st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
AUDIT OBJECTIVES
The objectives of this audit are to express an opinion on whether:
1. The Financial Report presents fairly, in all material respects, the actual expenditure
incurred and the revenue received for the grant financed by the World Bank (WB) under
credit agreement TF 017336, for the period from 26 August 2014 till 31 December 2015 in
conformity with the applicable contractual conditions; and
2. The projects funds received from the World Bank (WB) under credit agreement TF 017336
have, in all material respects, been used in conformity with the applicable Contractual
Condition and the Project Financial Statements (PFS) show true and fair presentation of
the Project's financial position as of the end of each fiscal year and funds receipts and
expenditures incurred during the period then ending.
3. The Procurement Guidelines of the World Bank have been properly applied and in
accordance with the Project's Loan Agreement.
4. The Internal Control System designed, set up and operated by the Entity for the purpose of
managing risks to the achievement of the objectives of the project, was suitable designed
and operated effectively for the Egyptian Environmental Affairs Agency (EEAA) Project for
the period from 26 August 2014 till 31 December 2015.
5. Determine if the Statement of Assets presents properly (i.e. number, description and value
of assets) and completely (i.e. all assets covered by the expenditure in the Financial
Report) the assets acquired for the Egyptian Environmental Affairs Agency (EEAA) Project
for the period from 26 August 2014 till 31 December 2015 is in conformity with the
Contractual Condition
STANDARDS AND ETHICS
Our engagement was undertaken in accordance with:
- International Standard on Related Services ('ISRS') 4400 Engagements to perform
Agreed-upon Procedures regarding Financial Information as promulgated by the
International Federation of Accountants ('IFAC);
- The Code of Ethics for Professional Accountants issued by the IFAC. A
Offic :Vl , K st>o za MYTeMl a 33 65 - M,ob. - L12 22310
Office: Villa 3, Kasennst., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.:01222310006 - . -.
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
AUDIT SCOPE
The audit of Project accounts and funds flow is considered as special purpose contractual
agreement audit which in addition to compliance with International Standard on Auditing, the
auditor need to consider the World Bank reporting requirements, compliance with the World
Bank Procurement Guidelines. The audit scope includes:
a) The audit will be carried out in accordance with the International Standards on
Auditing, having regard to relevant financing agreements and World Bank
specific requirements, and should pay special attention to the following:
b) All funds provided to the Project have been used, accounted for and classified in
accordance with the relevant financing agreements;
c) Goods and services financed have been procured in accordance with the relevant
financing agreement;
d) All necessary copy of supporting documents, records, and accounts have been kept in
respect of all project ventures. Clear linkages should exist between the books of account
and reports presented to the Bank;
e) Where Designated Accounts have been used, they have been maintained in accordance
with the provisions of the relevant financing agreement;
f) Compliance with specific covenants of the Loan Agreement and Project Appraisal
Document (e.g, compliance with the short-term and long-term borrowing conditions,
cash flow covenant);
g) Determine eligibility of expenditures claimed under Statement of Expenditures
submitted to the World Bank for replenishment. This is in addition to substantiation of
these expenditures;
h) Review all correspondences with the World Bank in relation to the Project including
copies of the Aide Memoires, Mission Reports, and assess progress on all financial
issues.
PROCEDURES PERFORMED
As requested, we have only performed the procedures listed in Annex 3 of the terms of reference
for this engagement.
Bank policy requires that projects be supervised to ensure that loan/credit proceeds are used only
for the purposes for which the loan/credit was granted, with due regard to economy, efficiency, and
the sustainable achievement of the project's development objectives. Under the action based
disbursement method, loan proceeds are disbursed on the basis of Statem t kp res
6
Office: Villa 3, Kasemn st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 . * -.
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
(SOEs) for the expenditures below a threshold which is established by the legal agreement for
each project. The SOE review is to ensure eligibility of expenditures, adequacy and sufficiency of
documentation, and proper procedures for and controls over SOE use.
The objectives of the review are to ensure that the funds disbursed under SOEs are used for the
purposes intended in accordance with legal agreements, and mitigating chances of misuse. This
review process includes the following:
a) Determine whether appropriate levels of review and approval within the internal control
system are in place regarding SOE disbursement;
b) Determine whether SOE procedures are properly used in accordance with the project's
legal agreement(s);
c) Determine whether the project has maintained adequate supporting documentation to
support claims for Bank disbursements on the basis of SOEs;
d) Verify that expenditures are eligible for financing by the World Bank and are properly
accounted for in terms of the disbursement categories, and that the correct disbursement
percentage has been applied;
e) Identify any ineligible, questioned and unsupported expenditures, and where identified,
recommend follow up actions; and
f) Identify possible improvements in the project financial management practices in the light of
deficiencies identified during the review.
The SOE review process consists of:
1) Obtain the SOE-based withdrawal applications from the Country disbursement team, and
identify and select a sample of SOE withdrawal applications and transactions for field
review. A random sample of SOEs shall be selected from the list of SOE disbursement
applications available within the Bank. ICS - the disbursement information system is
another way to obtain information about withdrawal applications. The selection shall be
based on (i) the nature, size and expected number of contracts below the SOE threshold;
(ii) the Bank's previous experience with the particular borrower i onable
available time for review and cost effective consideration. Norma 0 9tS&EA sd
7
Office : Villa 3, Kasemn st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 - . * -*. . .
M E S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
expenditures should be selected for review. The number of transactions and the amount
of expenditures should be taken into account.
1) Review of the control procedures regarding SOE disbursement. The reviewer should
consider the effectiveness of the following controls and document any instances where controls
are lacking or are considered in need of strengthening:
2) Documentation review. The documentation of a sample of withdrawal
applications is reviewed. The documents that normally support payments are (a) evidence of
receipt, invoice or performance, (b) evidence of payment, and (c) proper procurement documents.
3) Verify eligibillty of expenditures. The review determines whether the expenditures are
properly supported and are eligible for Bank disbursement in accordance with legal agreements.
SOURCES OF INFORMATION
The Report sets out information provided to us by you in response to specific questions or as
obtained and extracted from your accounts and records.
USE OF THIS REPORT
This Report is solely for the purpose set forth above under objective.
8
Office : Villa 3, Kasemn st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob.: 01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
INFORMATION ABOUT THE GRANT
PROJECT DESCRIPTION
The project development objective is to improve the management and disposal of targeted
stockpiles of obsolete pesticides, including Persistent Organic Pollutants (POPs) and
Polychlorinated Biphenyl (PCBs), in an environmentally sound manner.
The project consists of the following two parts:
Part A: Destruction of High Risk Stocks of Obsolete Pesticide
i. Carrying out an environmentally sound program for the safe packaging, removal, transportation,
export and destruction of approximately 1,000 tons of identified high risk stocks of pesticides and
other high-risk obsolete pesticides, following a risk based prioritization approach, in state-of-the-art
facilities overseas, including: (a) disposal of the stockpiles of about 220 tons of Lindane at the
Al-Adabeya port storage facility; disposal of the stockpiles of about 440 tons of pesticides at the El
Saff storage facility; and (c) the identification of all high risk stockpiles, and dispose of another
approximately 350 tons of high risk stocks currently scattered across a
number of sites.
ii. Technical Upgrading of Ministry of Agriculture and Land Reclamation (MALR) Central
Agricultural Pesticides Laboratory to identify unlabeled products uncovered, as necessary, and to
analyze pesticide samples.
iii. Enhancing the environmental management system of MSEA/EEAA to promote the
identification, packaging, removal, transportation and destruction of high risk stocks of obsolete
pesticides. This will include training of staff of EEAA and the Cooperating Ministries to track and
monitor obsolete stockpiles and ensure the ultimate destruction of high risk stockpiles, Project
monitoring and evaluation and enhancing EEAA and MALR system of tracking obsolete pesticides,
and dissemination of results, including raising public awareness.
Part B: Destruction of High Risk Stocks of Obsolete Pesticide
i. Carrying out of a program for the management of PCBs and PCB containing et focusing
on PCBs in the public electricity generation, transmission and distribution s a)
the acquisition and installation of equipment for dechlorination and purific f
9
Office : Villa 3, Kasemn st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob. :01222310006 - . .*-.
V1 S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
low to medium-concentration stocks of approximately 1000 tons of PCB contaminated oils, which
will produce an oil suitable for reuse in transformers; (b) providing technical assistance to EEAA
and MOEE/EEHC staff to address the decommissioning of PCB containing equipment; and (c)
provision of laboratory support and the acquisition and utilization of instruments, electronic
equipment and chemicals for sampling to measure the level of PCBs.
ii. Enhancing the environmental management system of MSEA/EEAA to promote the identification
and decontamination of PCB-contaminated oils, including training of staff of EEAA and the
Cooperating Ministries to track, monitor and decontaminate PCBs and PCB containing equipment,
supporting Project monitoring and evaluation and enhancing EEAA's system of tracking PCBs and
PCB containing equipment to ensure sustainable project outcomes, monitoring of project
performance indicators, and dissemination of results, including raising public awareness.
Grant Expenditure Categories, Amounts and Percentage of Financing;
Amount of the % of
Category Grant allocated expenditures to
in US $ be financed
- Goods, Non - Consulting Services, Consultants' Services US $ 7,650,000 100%
and Training
- Operating Costs US $ 450,000 100%
Total Grant Amount us $ 8,100,000
10
Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 - . - ..
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
1- STA EMENT OF SOURCES AND USES
For the period ended December 31, 2015
WB WB Cumulative
contribution contribution
USD $ USD $
Funds Receipts:
Opening Balance August 26,2014 --- ---
Advance received December 4,2014 600,000 ---
Direct Payment - -
Replenishments received --- ..
Currency Exchange Variance --- .-
Interest Revenues ..-
Total Funds 600,000
Less:
Expenditures from SOE
- Goods, Non- Consulting Services, Consultant's
. . 236,523.88--
Services & Training
-Operating costs 79,696.53 ---
Total Expenditures 316,220.41 ---
Grant Balance 283,779.59
Adjustments:
Petty Cash on hand in SPMP PMU 194.56 ---
Balance per bank statement as of December 31,2015 283,585.03 ---
11
Office : Villa 3, Kasem st., Dokki, Giza Tel : 33352389 Fax: 33365689 Mob. :01222310006 P-1
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
2- STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION
For the period ended December 31, 2015
WB WB Cumulative
contribution contribution
USD $ USD $
Bank Statement Balance on August 26,2014 0
Add:
Advance received 600,000
Direct Payment .--
Replenishments received --- --.
Currency Exchange Variance --- .--
Interest Revenues .--
Present Outstanding amounts advanced to the Designated Account 600,000 ---
Designated Account Closing Bank Balance 283,585.03 ---
Add:
Expenditures from SOE
-Goods, Non- Consulting Services, Consultant's Services
& Training
-Operating Costs 79,696.53 ---
Total Expenditures 316,220.41
Add:
Petty Cash on hand in SPMP_PMU 194.56 ---
Total Funds received during the period 600,000 ---
Financial Officer Proj
12
Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006 - . * -
S. Mostafa El Gammall
Chartered Accountant Finance &Taxation Consultant
3- STATEMENT OF EXPENDITURES (SOE) WITHDRAWAL SCHEDULE
For the period ended December 31, 2015
This statement includes the replenishments received from the World Bank during the
reviewed period.
Direct
Advances Replenishments Total
Month _______Payment
US$ US$ US$ US$
Opening Balance 600,000 --- --- 600,000
Total 600,000 ----- 600,000
4- STATEMENT OF ASSETS
For the period ended December 31, 2015
We have audited the statement of assets for SPMP with the following procedures:
a. We have Reviewed procurement procedures to determine that sound commercial
practices including competition were used, reasonable prices were obtained, and
adequate controls on qualities and quantities were received,
b. The purchase and procurement of assets and compliance with Agreement Terms and
Conditions. We have examined supplies (e.g. vehicles, equipment, tools, various
materials and products for compliance with procurement rules as per agreement terms
and conditions.
c. Assess the existence of assets (e.g. physical inspection of assets), valuation,
ownership, recording and classification and disclosure of assets;
In our opinion, Expenditures provided in the statement of assets are properly supported and
represent eligible expenditures under the loan agreement. Also the procurements of goods and
equipment's incurred during the year were conducted in accordance with the Worl
procurement guidelines under IBRD Loans and IDA Credits, dated January 2 t
Guidelines).
Office: Villa 3, Kasem st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 - . * *- . *
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
FACTUAL FINDINGS FOR FINANCIAL STATEMENTS
For the period ended December 31, 2015
1- SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted as follows:
SPMP project use the cash method of accounting for ease of administration and accountability of
funds. The cash method provides a clear and concise audit trial from the accounting records to the
certified fiscal report.
The Accounting Records are as follows:
a) General Journal
b) Ledger Account
c) Financial Reports
The Accounting Reporting Cycle are as follows:
1. Financial Report
2. Ledger Account
3. General Journal
4. Accounting forms
5. Supporting Documents e.g. (contracts, invoices,.. .etc.)
The financial statements have been prepared under the basis of cash receipts and cash
disbursements. The significant accounting policies adopted as follows:
a. Accounting convention
The statements are prepared in accordance with the cash basis convention.
b. Taxation
The World Bank Loan should not be used to pay any sort of taxes. Taxes due on purchased goods
or services are charged to the Egyptian party.
The Project Management Committed with the World Bank regulations in this regard during the
audited period.
c. Expenditures
Expenses are incurred when actually paid.
14
Office: Villa 3, Kasem st., Dokki, Giza Tel :33352389 Fax: 33365689 Mob. :01222310006 - . - ..
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
2- INTERNAL CONTROL SYSTEM
Internal control is defined as a process affected by the entity's management , and other personnel
designed to provide reasonable assurance regarding the achievement of the following objectives:
1. Reliability and integrity of financial reporting.
2. Effectiveness and efficiency of operations.
3. Safeguarding of assets, and compliance with contract agreement regulations
Summary of SPMP internal controls
A. Independent checks on performance and proper valuation of recorded amounts
Document/Activity Responsible Official(s)
Selection of consultant Technical Committee
Evaluation of the performance of the consultant Project Manager/ National Project Director
proper reporting of the financial data Finance Manager
Overall supervision of financial and technical work Project Manager/ National Project Director
B. Segregation of duties
Document/Activity Responsible Official(S)
Evaluation of bids and proposals Procurement Committee
Approval for selection Project Manager
Approval of reports Project Manager
Preparation of check/payment Financial Manager
Review of financial procedures Financial Manager/Ministry of finance
representative in EEAA
Signature on check/payment Project Manager/Ministry of finance
representative in EEAA
Bookkeeping Financial Manager
Check distribution Financial Manager
In our opinion, SPMP project use adequate authorized level of internal control to maintain
disbursements for approving transactions before the procurement process & other disbursements
and in checks inquiry.
We recommend the PMU to start install and use the financial Management system that was
contracted on November 2015 for the project.
15
office: Villa 3, Kasern st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
3- CURRENCY EXCHANGE VARIANCE
The functional currency of the project is the United States Dollars (USD $) , accordingly all the
transactions of the Egyptian Pounds are translated according to the official exchange rate and
revaluation of the currency exchange rate occurs according the spot rate of the Central Bank of
Egypt on the date of cashing the payment order.
4- GOODS, NON-CONSULTING SERVICES,
CONSULTANTS' SERVICES & TRAINING
This account represents amounts withdrawn through the following:
Current WB Cumulative
Contribution WB
USD $ Contribution
USD $
Goods, Non consulting services, Consultants
services, Training
Total cash disbursed 236,523.88 ---
5- OPERATING COSTS
This account represents amounts withdrawn through the following:
Cumulative
Current WB
ContributionWB
USD $ Contribution
USD $
Operating costs 79,696.53 ---
Total cash disbursed 79,696.53 ---
16
Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob. : 01222310006 - . - ..
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
6- CASH FLOW RECONCILIATION
Cash Flow Reconciliation of Sustainable Persistent Organic Pollutants (POPs)
Management Project (SPMP) for the period from August 26, 2014 to
December 31, 2015
Description USD $
Opening balance as per cashier and bank statements as at (26/8/2014) A 0
RECEIPTS
Advances/disbursements from the World Bank 600,000
Interest received 0
Total Receipts B 600,000
Payments
Payments made
-Goods, non-consulting services, consultants services and training expenditures 236,523.88
-Operating costs expenditures
79,696.53
Other disbursements
Total payments C 316,220.41
Calculated balance D (A+B-C) 283,779.59
Petty Cash in hand 194.56
Balance of account no (4/082/18424/1) in Bank (Central Bank) held in
currency (in USD)
Total balance as per cashier and bank statements as at (31/12/2015) 283,779.59
Differences in receipts and income in financial report
Difference in payments and expenditure in the financial report (2) ---
Difference in payments and expenditure in the financial report 0
Total Project funds as at (31/12/2015) F
Differences G (F-D) 0
17
Office : Villa 3, Kasem st., Doki, Giza Tel :33352389 Fax :33365689 Mob.: 01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.1)
For the period ended December 31, 2015
Part A: SOE sample reference information
Credit No. Grant Agreement TFO 17336
Project Name Sustainable Persistent Organic Pollutants
(POPs)Management Project (SPMP)
pplication No. 10
SOE page No. I item No. 1
Amount of transaction USD $ 21,353.17
Disbursement category Goods and Equipment
Reporting period December 31, 2015
Description of expenditures Paying invoice for MISR Company technology for
buying computers and printers to PMU
Part B: Checklist and Results of the review for each transaction
Description of documents Whether available Whether acceptable
(Yes, No, NA) (Yes, No, NA)
1) procurement documents Yes Yes
2) purchase contract / order Yes Yes
3) letter of credit NA NA
4) supplier's invoice and certificate of origin Yes Yes
5) shipping documents NA NA
6) contractor's or consultant's invoices or certificates Yes Yes
7) other evidence of receipt of goods or services NA NA
8) force account records Yes Yes
9) recurrent cost records NA NA
10) authorization for payment Yes Yes
11) evidence of payment Yes Yes
12) accounting records Yes Yes
Conclusion:
1. Whether the expenditures are eligible for the Bank financing (Y/N): Y
2. Whether the expenditures are properly supported and accounted for (Y/N):
3. Comments and recommendation: None. r
18
Office: Villa 3, Kasem st., Dokki, Giza Tel: 33352389 Fax: 33365689 Mob.: 01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.2)
For the period ended December 31, 2015
Part A: SOE sample reference information
Credit No. Grant Agreement TF01 7336
Project Name Sustainable Persistent Organic Pollutants
(POPs)Management Project (SPMP)
pplication No. 12
SOE page No. / item No. 1
Amount of transaction USD $ 10,756.51
Disbursement category Goods
Reporting period December 31, 2015
Description of expenditures Paying invoice for El Mazen Company for buying
Ifurniture to PMU
Part B: Checklist and Results of the review for each transaction
Description of documents Whether available Whether acceptable
(Yes, No, NA) (Yes, No, NA)
1) procurement documents Yes Yes
2) purchase contract / order Yes Yes
3) letter of credit NA NA
4) supplier's invoice and certificate of origin Yes Yes
5) shipping documents NA NA
6) contractor's or consultant's invoices or Yes Yes
certificates
7) other evidence of receipt of goods or NA NA
services
8) force account records Yes Yes
9) recurrent cost records NA NA
10) authorization for payment Yes Yes
11) evidence of payment Yes Yes
12) accounting records Yes Yes
Conclusion:
1. Whether the expenditures are eligible for the Bank financing (Y/N): Y
2. Whether the expenditures are properly supported and accounted for ( /PO:
3. Comments and recommendation: None
Office : Villa 3, Kasem st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob. :01222310006 - ....
S. Mostafa El Gammal
Chartered Accountant Finance Taxation Consultant
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS ((No.3)
For the period ended December 31, 2015
Part A: SOE sample reference information
Credit No. Grant Agreement TF017336
Project Name Sustainable Persistent Organic Pollutants
(POPs)Management Project (SPMP)
Application No. 53
SOE page No. / item No. 1
Amount of transaction USD $ 4040.35
Disbursement category Consultants' services
Reporting period December 31, 2015
Description of expenditures Paying fees for Limra Egypt Company for buying and
,installing financial information system for SPMP project.
Part B: Checklist and Results of the review for each transaction
Description of documents Whether available Whether acceptable
(Yes, No, NA) (Yes, No, NA)
1) procurement documents Yes Yes
2) purchase contract / order Yes Yes
3) letter of credit NA NA
4) supplier's invoice and certificate of origin Yes Yes
5) shipping documents NA NA
6) contractor's or consultant's invoices or Yes Yes
certificates
7) other evidence of receipt of goods or NA
services
8) force account records Yes s
9) recurrent cost records NA A
10) authorization for payment Yes
11) evidence of payment Yes Y
12) accounting records Yes Yes
Conclusion:
1. Whether the expenditures are eligible for the Bank financing (Y/N): Y
2. Whether the expenditures are properly supported and accounted for (Y/N): Y
3. Comments and recommendation: None
20
Office : Villa 3, Kasern st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006
Vn S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.4)
For the period ended December 31, 2015
Part A: SOE sample reference information
Credit No. Grant Agreement TF017336
Project Name Sustainable Persistent Organic Pollutants
(POPs)Management Project (SPMP)
Application No. 40
SOE page No. I item No. 1
Amount of transaction USD $ 17296.41
Disbursement category Training
Reporting period December 31, 2015
Description of expenditures Paying expenses for Ein Sokhna POPs training
programs for the partners ministries
Part B: Checklist and Results of the review for each transaction
Description of documents Whether available Whether acceptable
(Yes, No, NA) (Yes, No, NA)
1) procurement documents Yes Yes
2) purchase contract / order Yes Yes
3) letter of credit NA NA
4) supplier's invoice and certificate of origin Yes Yes
5) shipping documents NA NA
6) contractor's or consultant's invoices or Yes Yes
certificates
7) other evidence of receipt of goods or NA
services
8) force account records Yes
9) recurrent cost records NA
10) authorization for payment Yes
11) evidence of payment Yes
12) accounting records Yes Yes
Conclusion:
1. Whether the expenditures are eligible for the Bank financing (Y/N): Y
2. Whether the expenditures are properly supported and accounted for (Y/N): Y
3. Comments and recommendation: None
21
Office : Villa 3, Kasernst., Doki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.5)
For the period ended December 31, 2015
Part A: SOE sample reference information
Credit No. Grant Agreement TF01 7336
Project Name Sustainable Persistent Organic Pollutants
(POPs)Management Project (SPMP)
Application No. 26
SOE page No. / item No. 1
Amount of transaction USD $ 4960.04
Disbursement category Operating costs
Reporting period December 31, 2015
Description of expenditures Paying invoice for printing publication materials to the
PMU
Part B: Checklist and Results of the review for each transaction
Description of documents Whether available Whether acceptable
(Yes, No, NA) (Yes, No, NA)
1) procurement documents Yes Yes
2) purchase contract / order Yes Yes
3) letter of credit NA NA
4) supplier's invoice and certificate of origin Yes Yes
5) shipping documents NA NA
6) contractor's or consultant's invoices or Yes Yes
certificates
7) other evidence of receipt of goods or Yes Yes
services
8) force account records Yes es
9) recurrent cost records NA
10) authorization for payment Yes * .
11) evidence of payment Yes Y
12) accounting records Yes e
Conclusion:
1. Whether the expenditures are eligible for the Bank financing (Y/N): Y
2. Whether the expenditures are properly supported and accounted for (Y/N): Y
3. Comments and recommendation: None
22
Office : Villa 3, Kasern st., DOkk, Giza Tel :33352389 Fax :33365689 Mob. :01222310006
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
INDEPENDENT AUDIT REPORT
To The Management of
Sustainable Persistent Organic Pollutants (POPs) Management Project (SPMP)
11-January- 2016
We have audited the preparation Grant TF97823. This Grant amounted to USD 100,000, all
under one consultancy contract, and it was Directly Disbursed by the World Bank to the
beneficiary according to a single Withdrawal Application.
- Factual finding No.1:
During our audit review, and as stated in Article No. 5 (Audit Deliverables/ iv- Audit Report for
TF97823 in the Terms of Reference for Annual Audit and Semi annual Reviews of Sustainable
Persistent Organic Pollutants (POPs) Management Project (SPMP) financed by the World Bank
(WB), we found that EEAA 'the Protection of the Environment Fund(EPF)' has approved to
transfer to on 30th May 2012 through application of withdrawal with a direct payment application
type the amount of 100,000 USD to Tauw company. (Attached Part B: Checklist and Results of
the review for the transaction)
0*
23
Office : Villa 3, Kasem st., Dokki, Giza Tel :33352389 Fax :33365689 Mob. :01222310006 i
S. Mostafa El Gammal
Chartered Accountant Finance &Taxation Consultant
WORKING PAPER FOR REVIEW OF INDIVIDUAL TRANSACTIONS (No.6)
For the period ended December 31, 2015
Part A: SOE sample reference information
Credit No. Grant Agreement TF97823
Project Name Sustainable Persistent Organic Pollutants
(POPs)Management Project (SPMP)
Application No. 1
SOE page No. / item No. 1
Amount of transaction USD $ 100,000
Disbursement category Consultancy services
Reporting period December 31, 2015
Description of expenditures Paying consultancy services for Tauw Company for
project preparation study
Part B: Checklist and Results of the review for each transaction
Description of documents Whether available Whether acceptable
(Yes, No, NA) (Yes, No, NA)
1) procurement documents NoNo
2) purchase contract / order No No
3) letter of credit NA NA
4) supplier's invoice and certificate of origin No No
5) shipping documents NA NA
6) contractor's or consultant's invoices or No No
certificates
7) other evidence of receipt of goods or NA NA
services\,e
8) force account records _ No No
9) recurrent cost records NA
10) authorization for payment Yes Yep
11) evidence of payment No
12) accounting records No
Conclusion:
1. Whether the expenditures are eligible for the Bank financing (Y/N): Y
2. Whether the expenditures are properly supported and accounted for (Y/N): N
3. Comments and recommendation: None
24
office : Villa 3, Kasemn st., Dokki, Giza Tel : 33352389 Fax : 33365689 Mob. : 01222310006